Wage Garnishment
What Is Wage Garnishment and How Does It Work?
Wage garnishment is a legal process requiring an employer to withhold a portion of an employee’s paycheck and send it directly to a creditor to satisfy a debt. Common types include child support, tax levies, and student loan defaults.
Garnishment orders arrive as legal directives—from a court, state child support agency, or the IRS—that an employer is legally obligated to honor once received. Each type of garnishment has its own withholding limits and priority rules: child support orders can claim up to 50–65% of disposable earnings depending on the employee’s other support obligations, while general creditor garnishments under federal law are capped at the lesser of 25% of disposable earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage. IRS tax levies follow a separate formula based on filing status and dependents.
When multiple garnishment orders apply to the same employee, federal and state rules establish a priority order. Employers who fail to comply with a valid garnishment order, or who terminate an employee solely because of a single garnishment (illegal under federal law), expose themselves to liability for the amount that should have been withheld, plus potential penalties.
Wage Garnishment Limits and Priority Rules by Type
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Applied to "disposable earnings"—pay remaining after legally required deductions.
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Child support garnishments can claim up to 50–65% of disposable earnings.
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Standard creditor garnishments are capped at 25% of disposable earnings (federal limit).
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Terminating an employee solely for one garnishment is illegal under federal law.
Frequently Asked Questions
Can an employer be penalized for not complying with a garnishment order?
Yes—the employer can become liable for the amount that should have been withheld and sent to the creditor.
What's the maximum amount that can be garnished from a paycheck?
It depends on the type—child support can reach 50–65% of disposable earnings, while standard creditor garnishments are capped at 25%.
Can an employer fire someone for having a garnishment?
Not for a single garnishment order—federal law prohibits termination based solely on one garnishment.
Do garnishment rules differ by state?
Yes—some states set lower caps or offer more employee protection than federal law requires, so employers must check state rules too.
What happens when an employee has multiple garnishment orders?
Federal and state priority rules determine which order gets paid first, typically prioritizing child support and tax levies over consumer debt.
Related terms: Payroll Deductions, Disposable Earnings, Payroll Tax Withholding